Your pay stub arrives every two weeks, you glance at the bottom number, and it goes in the drawer. Sound familiar? Most Americans never take the time to understand what every line on their pay stub actually means — and that's a costly habit. Errors in pay stubs are far more common than you'd think, and understanding each deduction puts you in control of your financial picture.
A pay stub (also called a paycheck stub, pay slip, or earnings statement) is a document your employer provides with every paycheck that breaks down exactly how your gross pay was calculated, what was deducted, and what you actually received as net pay. In most US states, employers are legally required to provide pay stubs. Even in states where it's not mandated, most employers provide them.
Pay stubs come in paper form attached to a physical check, or digitally through your employer's payroll portal (such as ADP, Gusto, Paychex, or Workday). The information is the same regardless of format.
Here's what a typical bi-weekly pay stub looks like for someone earning $65,000 per year in Texas (no state income tax), filing as single with standard W-4 elections and a $200/month 401(k) contribution:
| Line Item | This Period | Year-to-Date |
|---|---|---|
| Gross Pay | $2,500.00 | $17,500.00 |
| Federal Income Tax | –$248.00 | –$1,736.00 |
| Social Security (6.2%) | –$155.00 | –$1,085.00 |
| Medicare (1.45%) | –$36.25 | –$253.75 |
| 401(k) Pre-Tax | –$100.00 | –$700.00 |
| Health Insurance | –$85.00 | –$595.00 |
| Net Pay | $1,875.75 | $13,130.25 |
This is your total earnings before any deductions. For a salaried employee earning $65,000/year paid bi-weekly, gross pay is $65,000 ÷ 26 = $2,500 per paycheck. For hourly workers, it's your hourly rate multiplied by hours worked, including any overtime premium. Always verify this number first — if it's wrong, everything else will be wrong too.
This is estimated federal income tax withheld based on your W-4 elections and the IRS withholding tables. The amount varies based on your filing status, pay frequency, and any additional withholding you've elected. This is not a flat percentage — it's calculated using IRS Publication 15-T tables. At year-end, your actual tax liability is reconciled on your Form 1040.
A flat 6.2% of gross wages, up to the annual wage base of $176,100 in 2026. This funds the Social Security retirement and disability program. Once your year-to-date earnings cross the wage base, this deduction stops for the rest of the year — which is why some workers see a larger paycheck later in the year.
A flat 1.45% of all gross wages with no cap. High earners above $200,000 (single) also see an Additional Medicare Tax of 0.9% on income above that threshold. Together with Social Security, these two deductions are called FICA taxes.
💡 Quick check: Add your Social Security and Medicare together. The total should be exactly 7.65% of your gross pay (before the wage base cap). If it's different, ask HR to verify.
If you work in a state with an income tax, this line shows the amount withheld for your state. Nine states have no income tax at all: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. If you live in one of these states, this line simply won't appear on your stub.
Pre-tax contributions to an employer-sponsored retirement plan reduce your taxable wages. Your contribution amount is determined by the election percentage you set when you enrolled. In our example, $200/month = $100 per bi-weekly check. This money is deducted before federal and state income tax is calculated — saving you tax dollars today while building your retirement savings.
Your share of employer-sponsored health, dental, and vision insurance. These premiums are typically taken as pre-tax deductions through a Section 125 cafeteria plan, which means they reduce your taxable income. Your employer usually pays a larger portion of the total premium — what you see on your stub is only your contribution.
The bottom line — what actually hits your bank account or is printed on your physical check. This is your take-home pay after all mandatory taxes and voluntary deductions have been subtracted from your gross pay.
The YTD column shows your running total for each line since the beginning of the calendar year (or your hire date if you started mid-year). This column is important for tracking your progress toward the Social Security wage base, verifying your total tax withholding matches what you'll owe, and catching errors that may have accumulated over multiple pay periods. Review your YTD column at least quarterly.
Payroll errors happen more often than most workers realize. Keep an eye out for: incorrect hourly rate or salary amount on gross pay, Social Security still being withheld after you've crossed the wage base, health insurance deductions that don't match your open enrollment elections, 401(k) contributions not matching your elected percentage, or duplicate deductions appearing in the same period.
Enter your salary and deductions — our calculator shows exactly what your pay stub should look like.
Check My Pay Stub →Contact your HR or payroll department immediately with your pay stub in hand. Most payroll errors can be corrected in the next pay cycle. Keep copies of all your pay stubs — at minimum for the current tax year, and ideally for three years. They're invaluable if you ever face an IRS audit, dispute with an employer, or need to verify income for a loan application.
Understanding your pay stub is the first step toward taking control of your finances. Once you know what every line means, you can make informed decisions about your W-4 elections, retirement contributions, and benefit enrollments that directly increase your take-home pay. Use our free pay calculator to verify your numbers anytime.